Is my camera busted?

When I super zoom (over 15x or more), there's a blinking dot. Is it only on my unit, or has anyone else noticed it? I can cover my camera, and the dot is still there. I don't know if I should return it while I still can. S25u. I know I won't use that kind of zoom very often, but I expect better quality for the price (if this is a hardware defect, not a software bug).